Civil Engineering May 2022 | Vol 30 No 4

Construc t i on and i nsurance law T he booklet, titled ENSafrica Construction ENSurance: recent influential court decisions and what they may mean for your business references judicial decisions made in 2019 and 2020. Although many of these deci- sions originate in the United Kingdom, Australia and Canada, they are worth paying attention to as they may prove to be influential on future decisions made by South African courts. We have selected five topics and pro- vide our expert analysis and commentary in respect of each one. While this is not intended to be a reference work, we do hope that it will be useful to those in the construction and insurance industries. The five topics and the judicial decisions to which they relate serve to demonstrate the significant interconnectedness between the fields of construction and insurance law. The selected topics are: 1. The status of interim payment certifi- cates on cancellation of a construction contract and implications for con- struction guarantees and guarantee insurers. 2. Coverage implications for insurers in a construction contract in circum- stances where the construction all risks insurance policy and the reinsur- ance policy are not back-to-back. 3. Contractual liability exclusion clauses in liability insurance cover, including construction all risks covers. 4. The rectification of an on-demand construction performance guarantee issued by an insurer and the doctrine of strict compliance. 5. The controversial defective workman- ship exclusion in construction all risks insurance policies. In this article we unpack the fourth topic listed above. TOPIC FOUR UNPACKED The rectification of an on-demand construction performance guarantee issued by an insurer and the doctrine of strict compliance In a recent 2020 unreported judgment of the Gauteng Local Division, Clarion Investments 49 (Pty) Limited v Lombard Insurance Company Limited , the court, in granting its provisional sentence against the defendant (the “Guarantor”) for payment of an amount of R3 701 112.59, Recent influential court decisions and what they may mean for your business – Part 4 ENSafrica has released a booklet on construction insurance topics with reference to judicial decisions made in 2019 and 2020. This article forms part 4 of a series that unpacks the various topics covered in the booklet. Zoë Wein Insurance Practice Group | Associate ENSafrica zwein@ensafrica.com Civil Engineering May 2022 29 Zara Sher Insurance Practice Group | Senior Associate ENSafrica zsher@ENSafrica.com Rob Scott Insurance Practice Group | Executive ENSafrica rscott@ENSafrica.com